Banking Act 1987 (repealed)

57 Deposit base of transferee institutions. U.K.

(1) This section applies where the liabilities in respect of deposits of a person specified in Schedule 2 to this Act (an “exempted person”) are transferred to an institution which is not such a person (a “transferee institution”).

(2) If the transferee institution becomes a contributory institution on the occasion of the transfer or immediately thereafter it shall be treated for the purposes of section 53 above as having such deposit base as it would have if—

(a) [F1 deposits in EEA currencies] with the United Kingdom offices of the exempted person at any time had at that time been [F1 deposits in EEA currencies] with the United Kingdom offices of the transferee institution; and

(b) [F2 certificates of deposit in EEA currencies] issued by the exempted person had been issued by the transferee institution.

(3) If the transferee institution is already a contributory institution at the time of the transfer, the Board shall levy from it, as soon as possible after the transfer, a further initial contribution of an amount equal to the initial contribution which it would have been liable to make if—

(a) it had become a contributory institution on the date of the transfer;

(b) its deposit base were calculated by reference (and by reference only) to the [F1 deposits in EEA currencies] with the United Kingdom offices of the exempted person, taking [F2 certificates of deposit in EEA currencies] issued by the exempted person as having been issued by the transferee institution; and

(c) the amount specified in section 56(2) above were reduced by the amount of any initial contribution which the transferee institution has already made.

(4) Whether or not the transferee institution is already a contributory institution at the time of the transfer it shall be treated for the purposes of the levying from it of any further or special contribution as having such deposit base as it would have if the [F1 deposits in EEA currencies] with its United Kingdom offices and the [F2 certificates of deposit in EEA currencies] issued by it included respectively [F1 deposits in EEA currencies] with the United Kingdom offices of the exempted person and [F2 certificates of deposit in EEA currencies] issued by that person.

[F3 (4A) In their application to UK institutions, subsections (2) to (4) above shall have effect as if references to United Kingdom offices included references to offices in other EEA States.]

(5) In its application to this section, section 5(3) above shall have effect with the omission of paragraphs (b) and (c).

Textual Amendments

F1 Words in s. 57(2)-(4) substituted (1.7.1995) by S.I. 1995/1442, regs. 29(1)(a), 53(1), 54(2)

F2 Words in s. 57(2)-(4) substituted (1.7.1995) by S.I. 1995/1442, regs. 29(1)(b), 53(1), 54(2)

F3 S. 57(4A) inserted (1.7.1995) by S.I. 1995/1442, regs. 29(2), 53(1), 54(2)

Modifications etc. (not altering text)

C1 S. 57: power to apply conferred (9.6.1997) by 1997 c. 32, s. 32(2); S.I. 1997/1427, art. 2(g).

C2 S. 57: power to repeal conferred (9.6.1997) by 1997 c. 32, s. 32(5)(a); S.I. 1997/1427, art. 2(g).